2013 (11) TMI 449 - AT - Service Tax

Demand of service tax - Exemption under Notification No.45/2010-ST - Services rendered relating to transmission and distribution of electricity - Held that - Prima facie the notification is applicable to the appellant and therefore exemption would be available in respect of service rendered relating to erection, commissioning or installation. As regards, renting of immovable property service also the appellant s claim appears to be sustainable. However, we also take note of the fact that the appellant has made a deposit of Rs.21,70,930/-. We consider that the amount deposited by the appellant is sufficient for the purpose of pre-deposit. Accordingly, the requirement of pre-deposit of the balance dues is waived and stay against recovery during the pendency of the appeal is granted - stay granted.

Summary

Issues:
1. Service tax demand for commissioning or installation service.
2. Service tax demand for renting of immovable property service.

Analysis:
1. The appellant, engaged in executing contracts related to various works, faced a service tax demand of Rs.60,68,455 for commissioning or installation service and Rs.4,91,145 for renting of immovable property service for the period 2005-06 to 2009-10. The appellant claimed that services related to transmission of electricity are exempt under Notification No.45/2010-ST dated 20.7.2010, providing retrospective exemption for such services. The Tribunal found that prima facie the notification applied to the appellant, granting exemption for services related to erection, commissioning, or installation.

2. Regarding the demand for renting of immovable property service, the appellant argued that the demand was based on rent received for vacant land not previously liable to tax before 2010. The Tribunal acknowledged the appellant's claim as sustainable. Additionally, the appellant had already made a deposit of Rs.21,70,930, which was deemed sufficient for the purpose of pre-deposit. Consequently, the Tribunal waived the requirement of further pre-deposit for the balance dues and granted a stay against recovery during the appeal process.

This judgment highlights the Tribunal's consideration of the appellant's arguments regarding service tax demands for commissioning or installation service and renting of immovable property service. The decision was in favor of the appellant, granting exemptions based on applicable notifications and the pre-deposit made by the appellant.